How about the concept of multiple student run messes where the student pay monthly fees to a mess and eat there. Since the mess is student run (administering it right from hiring cook to overlooking daily expense account) and mess manager rotated on a monthly basis, the food quality could be kept check on. If the quality goes bad the mess manager can change staff/cook etc... Also students have choice to shift to a different mess serving better food.
We had a similar system in my engineering college...Worked pretty well !

Cool post dude. Liked the narration style and the storyline.